Algonomics Receives Additional Funding for Joint Research with Lilly on Hereditary Deafness Treatment

Third Research Funding Disbursed After Two Previous Payments in the First Half
Separate from Upfront and Milestone Payments; Recognized as Revenue
Joint Research Underway Using RNA Replacement Enzyme Technology

Algonomics announced on July 22 that it had received additional research funding for the joint research project on the treatment of hereditary deafness that is underway with the global pharmaceutical company Eli Lilly.

Algonomics company logo image. Algonomics

This research funding is the third payment, following two previous disbursements in the first half of the year. Based on the agreement signed last year, the two firms are conducting joint research on hereditary deafness treatments utilizing RNA replacement enzyme technology.

The research funding is provided separately from the total contract amount, which consists of an upfront payment and milestone payments. The company explained that, in accordance with accounting standards, it will recognize the amount as revenue in its financial statements over the earnings recognition period.

The market for hereditary deafness treatments has been drawing increased attention since April, when Regeneron’s Oto-Armene received the first-ever approval from the U.S. Food and Drug Administration (FDA).

A representative from Algonomics said, "Receiving additional research funding demonstrates that our joint research with Lilly is proceeding as planned," adding, "We will work to advance research and development as well as expand global partnerships based on our RNA replacement enzyme platform."

Algonomics is developing a pipeline of gene therapies using its RNA platform, including the anti-cancer gene therapy RZ-001, as well as treatments targeting Alzheimer’s disease, retinitis pigmentosa, and Rett syndrome.

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